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Fundamental analysis: Alto Ingredients, Inc. (ALTO)

Awarener score: 5.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Lacking) and growth (Very poor), and the company's inclination to return cash to the stockholders (Average).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 3.0

  • Business has been shrinking at a fast pace. It's been substantially worse when measured against peer companies.
  • Alto Ingredients, Inc. business shows some variation, there's some risk. It looks somewhat worse than rivals.

Margins score: 3.7

  • ALTO profit margins -on goods and services sold- are usually destitute. They stand bottom tier against rival companies.
  • Business profit on sales tends to be meagre. It's substantially worse when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually meagre. They remain in a very weak position compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be meagre in relation to total revenues. They're still worse than most similar companies.
  • Profits -before income taxes- are usually meagre considering total sales, and remain substantially worse when measured against rivals.
  • Total net profit tends to be hardly sufficient when confronted to sales. Company stands substantially worse when measured against comparable firms.

Growth score: 1.0

  • Alto Ingredients, Inc. couldn't always profit -on goods and services sold- in the past years. It's been a disappointment compared to competitors.
  • In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
  • In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
  • In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
  • In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
  • In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
  • The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 1.0

  • ALTO had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 4.0

  • Alto Ingredients, Inc. usually gets low returns on the resources it controls. It proves substantially worse when measured against peer firms.
  • The company normally gets low proceeds -on the resources directly invested in the business-. They remain in a very weak position compared to similar companies.
  • Profitability -in relation to owned resources- is usually lacking. It ranks last-in-rank when measured against competitors.
  • In the past, got low returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's substantially worse when measured against comparable enterprises.

Usage of Funds score: 4.0

  • ALTO usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands substantially worse when measured against rival firms.
  • The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is weak when measured against industry peers.
  • In the past twelve months it paid low dividends, considering the current stock price. It came mediocre against competitors.
  • Has stopped or virtually stopped paying dividends. Unless they were a special one-shot payment, the company could be enduring difficult times. The company has behaved a disappointment compared to similar firms.
  • Dividend payments usually represent a minor portion of genuine funds generation and are most likely safe. Sustainability looks better than most comparable companies.
  • The company has significantly enlarged the pool of investors in previous years, resulting in more mouths feeding on the pie of profits. It remains a disappointment compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 6.0

  • Alto Ingredients, Inc. intangible assets (like brands and goodwill) represent a very small portion of resources controlled, according to accounting books, which is mostly safe. It happens to be encouraging in relation to peer companies.
  • The company has roughly triple short-term resources than short-term obligations. Liquidity concerns are most likely unimportant. It turns to be close to average when compared to similar firms.
  • Roughly a tenth of resources controlled were provided for with financial debt. Creditors have minor claims on the company, and financial position is safe. It remains well ranked against rival firms.
  • Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks encouraging in relation to rivals.
  • For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's rather normal in relation to peer firms.
  • For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is slightly better than similar enterprises.
  • Usually, sales are on less than a month credit. It still ranks great when measured against peers.
  • Normally has approximately somewhat less than one month of sales worth in inventory. It comes up as excellent in relation to competitors.
  • On average, it takes approximately two months from the purchase to charging customers. It happens to be top-notch against peers.
  • On average pays suppliers during the first couple of weeks from the purchase. It ranks weak when measured against industry peers.
  • The company pays its suppliers less than one month before charging its customers, so there's little money invested in working capital. It's excellent in relation to similar companies.
  • Has usually been losing money on the business, so net interest expenses must be paid by increasing borrowings, which is unsustainable in the long run. The situation is very risky for both creditors and shareholders, profitability must increase. It stands bottom tier against rival firms.
  • Business earnings have usually been low when measured against loans taken. Even cutting back reinvesting in the business, it could take more than seven years to repay the obligations with current profitability. It ranks substantially worse when measured against comparable enterprises.
  • Revenues are reasonable in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in good shape compared to similar firms.
  • Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still top-notch against peer companies.

Valuation score: 5.3

  • Alto Ingredients, Inc. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains impressive in relation to peers.
  • In the past twelve months, the company consumed funds. Either it reinvested significantly in the business or genuine fund generation might be struggling, which stands bottom tier against similar companies.
  • The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still great when measured against industry firms.
  • In the past twelve months, the company hasn't rewarded investors, considering both dividends and share on the pie of earnings. It came up in a weak position compared to peer ventures.
  • The company is somewhat indebted, loan repayment needs to be taken into account. It looks somewhat worse than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very low relationship. One common cause includes profitability being very poor. It looks impressive in relation to rival firms.
  • The stock price is significantly below the accounting book value. Unless profitability is extremely low, the stock may be selling at a large discount. Pay attention to the other key indicators for hints. The company remains top-notch against peer firms.
  • In the past twelve months, the operating business lost a lot of money. It happens to be last-in-rank when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a low earnings power ability when measured against the current stock price and financial position. It's still a disappointment compared to peer companies.

Total score: 3.5


ALTO logos

Company at a glance: Alto Ingredients, Inc. (ALTO)

Sector, industry: Basic Materials, Specialty Chemicals

Market Cap: 0.12 billions

Revenues TTM: 1.34 billions

Alto Ingredients, Inc. produces and markets specialty alcohols and essential ingredients in the United States. The company operates in three segments: Marketing and Distribution, Pekin Production, and Other Production. It offers specialty alcohols used in mouthwash, cosmetics, pharmaceuticals, hand sanitizers, disinfectants, and cleaners for health, home, and beauty markets; grain neutral spirits used in alcoholic beverages, flavor extracts, and vinegar, as well as corn germ used in corn oils and carbon dioxide for food and beverage markets; and essential ingredients include dried yeast, corn gluten meal, corn gluten feed, distillers grains, and liquid feed for commercial animal feed and pet food applications. The company also provides fuel-grade ethanol used as transportation fuel and distillers corn oil used as a biodiesel feedstock, as well as fuel-grade ethanol produced by third parties. In addition, it offers transportation, storage, and delivery services through third-party service providers. The company sells ethanol to integrated oil companies and gasoline marketers; essential ingredient feed products to dairies and feedlots; and corn oil to poultry and biodiesel customers. It operates five alcohol production facilities, including three plants in the Midwestern states of Illinois; and two facilities located in the Western states of Oregon and Idaho. The company was formerly known as Pacific Ethanol, Inc. and changed its name to Alto Ingredients, Inc. in January 2021. Alto Ingredients, Inc. was founded in 2003 and is headquartered in Pekin, Illinois.

Awarener score: 5.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Lacking) and growth (Very poor), and the company's inclination to return cash to the stockholders (Average).